September 6

3 Solid Stocks with Yummy Dividend Yields

Singapore investors are a bunch of yield hungry and dividend loving people. With interest rates at record low right now, they are looking at dividend stocks with decent yields right now.

Though there are views that interest rates might be increased in the near future to dampen the inflation rate, it is still unclear when this might happen.

Dividends will definitely still be a consideration when we invest in certain companies and here are 3 companies with delicious dividend yields you should take note of.

Dividend Stock #1 – Hongkong Land Ltd

Hongkong Land (HKL) invests for the long-term with a growing portfolio designed to attract and inspire leading corporations and retailers, as well as aspirational homeowners and residents.

It operates across the region, addressing local needs through teams on the ground across Hong Kong, the Chinese mainland, and Southeast Asia.

As of its latest half-yearly results, HKL’s revenue increased by 7.9% to USD 885.8 million. Its net profit though still negative has improved by a substantial 53.9%.

The group’s free cash flow came in at USD 650 million which brings its cash level to $2.35 billion.

HKL has been paying dividends twice every year without fail. A more impressive feat is that the dividends provided by HKL have increased from $0.19 per share to $0.22 per share over the last 5 years, translating into a decent 15% increase.

HKL last closed at $4.22 and sports a dividend yield of 5.32%. This is an approximate 4% premium to any fixed deposit rates in the Singapore market. Its P/NAV is also at an all-time low of 0.32x after its share price has crashed >40% in the past 2 years.

Dividend Stock #2 – ST Engineering Ltd

ST Engineering is a global technology, defence and engineering group with a diverse portfolio of businesses across the aerospace, smart city, defence and public security segments.

Driven by technology and innovation, we create people-centric, multi-disciplinary, smart engineering solutions for our customers in the defence, government and commercial segments.

As of its latest half-yearly report, STE’s revenue increased by 2.2% to $3.65 billion. Its net profit increased by a remarkable 15% to $ 293.5 million.

Free cash flow came in at $305.8 million. Cash balance of the company as a result increased to a healthy level of $582.7 million.

STE has been one of the most stable dividend distributor stocks on SGX. It has been constantly paying out $0.15 per share of stock since 2016 and has maintained it throughout these 5 years.

As of today’s market price, STE has a dividend yield of 3.87%. This is an approximate 2.8% premium to any fixed deposit rates in the Singapore market.

iFAST last closed at $3.86, which valued the company at a trailing P/E ratio of 21.66x and dividend yield of 3.87%.

Dividend Stock #3 – DBS Ltd

Source: Bloomberg via Getty Images

DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered
and listed in Singapore, DBS has a growing presence in the three key Asian axes of growth:
Greater China, Southeast Asia, and South Asia. The bank’s “AA-” and “Aa1” credit ratings are
among the highest in the world.

As of its latest quarterly results, DBS’s total income decreased by 4% to $ 7.4 billion. Its net profit increased by an amazing 54% to $3.7 billion.

The group’s operating cash flow came in at $3.2 billion which brings its cash level to $45.7 billion.

DBS bank has been the “to-go” to counter for dividends after Piyush started leading the bank. Dividends that DBS has been paying out were substantial (less COVID times). DBS has announced and will strive to pay out $0.30 of dividends per share per quarter. This adds up to $1.20 per share, which is definitely a delicious amount of dividends for anyone.

As of today’s market price, DBS has a forward dividend yield of 4%. This is an approximate 3% premium to any fixed deposit rates in the Singapore market.

DBS last closed at $3.92. which valued the company at a P/B ratio of 1.4x and dividend yield of 4%

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Tags

dbs, dividend stock, dividends, Hongkong land, ST Engineering


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